TOP 10 FACTS ,SMART TIPS AND TRICKS TO MANAGE PERSONAL FINANCE
Work Smart for Personal Finances.
Its not the fortune what you are loooking out for lies in the magic, but the continuous efforts in right directions.
But how to do so , is it possible without being technically sound or need an CFA or CA degree to ensure will not make a mess of your hard earned money. If your are not learning you are not growing.
As self love is important similarly self learning also plays a critical role in overall development of your perspective towards watching anything and trying to grow with it.
We are now in the age of self-learning. In an internet era world, numerous opportunities to teach yourself something new every day.
Learning to manage money is an important need for every adult. Its not necesary one needs to secure a MBA from Havward or Oxford University .
Tops Smart financial decisions prospectives.
1.Homework
Yess Homework, being an adult its looks old school type, but yes one need to think how much is need to keep yourself in comfortable and make yourself independent . Money is a scarce resource for most Managing it well is critical to good outcomes for life. This is easier said than done. Financial rules and model are jargon for many .But if you think, if your learning your growing if your are not learning you are not growing. Effort needs direction , direction needs targets, and all of them talks about the time , how much its cost to earn it. Making sense of it is tough for most people. But if you’re going to have the outcomes you desire from life, you must make the effort to understand what you’re doing with your money.
Hence one need a sound knowledge about the finance so that one can avoid being in trap or miss selling .
For example, we’ve seen that tens of thousands of miss-selling cases get reported to the insurance regulator every year. The complainants have been sold products that don’t work in their interests. The way to avoid these problems is doing your research and comparisons, and reading through the terms and conditions.
2.Check your token numbers
Crunching numbers can be challening and mlst of them struggle to do so . Most people’s formative memories are full of the challenges they faced with mathematics in school. It’s hard. But at the very least, as an adult, you must understand the complexities of financial math. This is important to get the best out of your finances.
For example, Power of compounding , and one of the underrated thing in financial math
CAGR.
This holds a capacity to turn your investment as Multiabaggers. As a quote attributed to Einstein goes, “Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it.” Learn to harness this power. It will strengthen your finances
3.Know your Target .
You must have worked towards targets — like completing a course by a certain age or scoring a certain number of marks in an exam , achieve a month on month target . Similarly, goal-setting in finances is critical. How would you get to where you want to be if you don’t know where you’re going? Some of the best financial outcomes result from goal-setting, and some of the worst result from the lack of it. Most concerned about two goals: home ownership and saving for their children’s education. With a goal, you can work backwards, break down your money needs into small, achievable steps and pick the right investment tool to help you achieve it.
4.You are unique in this universe.
Initial raising years in school or college would have helped you understand that you are different from other, like food clothing buying habits , working for anything's which you believe will work for your betterment .No two people are alike.
Therefore, each person must have their own unique financial persona and habits that help them become the people they need to be.
For example, everyone has a risk appetite that evolves out of their needs and circumstances. The young can take risks, recover from losses, and make gains from the investment market.
The elderly have limited risk appetite since their life expectations are low. Understand what makes you tick. Examine your risk appetite and risk tolerance. Calculate the risks you need to take to achieve your goals. Remember that with investments, not taking a risk is also a great risk.
5.Guidance from experts.
Never mind to ask but remain calm.Teachers may provide us extra care and attention when we’re struggling with a subject. Similarly, financial decisions are often hard. Making them alone increases risks. These decisions are best made informed. The more information you have, the better you may understand your risks and rewards.
Therefore, do not hesitate to reach out to people who could help you make these decisions. Financial planners can help you refine your plans, help you avoid obvious mistakes, and give you a greater chance of achieving your goals.
6.Insurance is not Investment but necessity.
We’re leading different lives with different challenges. We’ll need our own sweet time to achieve the things we want out of our money. Let your goals and information be your guide. Avoid comparing yourself with people.One of the most commonly made mistakes is mixing investments with insurance. This leads to poor coverage, low returns, and lack of liquidity. Help yourself by taking expert advice on how to avoid such pitfalls. Just as in our formative years, we must run our own race as adults too. We may not get to our goals at the same time as our peers.
One must have
1.Life Insurance and health insurance ensure uncertain events leading to wipeout lot of money from your account hence its necessity.
2. Investment in index based funds and debts funds like bonds, debenture with a perception for long term
3. Cash in hand and cash at bank for emergency i.e emergency funds.
4. Splitting the funds in equity and debt in good proportion considering risk appetite.
6.investment in currency market like sterling ponds, Americans Dollars ,government currency funds.
7. Leverage in bitcoins post several searches.
8. Investment is small volume and return on Investment needs to be invested again in other Financial assets.
9. Avoid emotional buying using credit cards with #NOCOSTEMI
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